Circular Trading is a Buzzword and it indicates a type of fraudulent trading. In this situation, sell orders are entered by a Stock broker who is aware of the corresponding buy orders or the vice versa. This is done with a number of intentions, the main one being that the volumes of the shares traded is boosted artificially. At the same time, stock brokers indulging in Circular Trading are able to artificially boost the price of the shares being traded in this fashion by them.
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